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‘No to expedited privatization’
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Posted on Jun 22 2005
Some senators are lobbying the Executive Branch against the immediate implementation of power privatization, saying that such a deal requires a thorough study and much preparation.
Sen. Joseph Mendiola, who chairs the Senate Committee on Fiscal Affairs, said yesterday that six senators, including himself, have drafted a letter for Gov. Juan N. Babauta, urging the latter “not to expedite” the privatization program.
He said the letter, which will be sent today to the governor, is signed by minority leader Pete P. Reyes and senators Luis P. Crisostimo, Thomas Villagomez, Henry San Nicolas, Diego Songao, and himself.
Mendiola said that privatization “involves complex issues” that should be clarified before entering into any agreement. He expressed doubts that the privatization would solve problems other than power generation.
“It’s a complex problem. It’s a systemic problem, not just a generation problem. We have big problems with distribution and with fuel,” he said.
He noted that during a recent presentation at the Legislature, a CUC consultant acknowledged a 25-percent loss in energy produced.
“It means that no matter what we do, even if we upgrade [power] generation, if we don’t fix the distribution, we’d continue to have a 25-percent loss,” he said.
If privatized, the government would be paying the company for generated energy that would eventually be lost, he said.
“It doesn’t make sense if we pay somebody and yet it’s not going entirely to the consumers,” he said.
The CUC, which is under the control of Gov. Juan N. Babauta in view of his declaration of state of emergency, aims to award an Independent Power Producer agreement in July, instead of October, as earlier set.
The CUC will choose between Telesource and Rolls Royce Power Ventures, represented locally by Pacific Marine Industrial Corp.
